News

Change of ownership in Nefab

September 05 2014

Nordic Capital Fund VI ("Nordic Capital") has reached an
agreement to sell its majority shareholding in Nefab Packaging AB
("Nefab") to the Nordgren/Pihl family, the original founders and
currently co-owners of Nefab. Since 2007, the company has grown its
revenue and substantially expanded its international presence. The
strategy will remain the same under new ownership.

The Nordgren/Pihl family founded Nefab in 1949, and
until 2007 was the majority owner of the company. Between 1996 and
2007, the company was listed on the Stockholm Stock Exchange. In
2007 the family and Nordic Capital joined forces to jointly acquire
Nefab in a public-to-private transaction which delisted the company
from the Stock Exchange.

From 2007 to 2013, Nefab increased sales from SEK
2.3 bn to approximately SEK 3 bn. During this time, several
value-enhancing add-on acquisitions were made, including the
purchase of US-based Chick Packaging in 2010 which transformed
Nefab's platform in the Americas. With this acquisition, Nefab's
presence expanded from one to ten manufacturing sites across the
region. Another example was a 2011 acquisition made in Mexico,
which has generated very good growth over the last three
years.

"During its seven years of ownership, Nordic Capital
has supported Nefab's growth and international expansion,
especially in the North American and Chinese markets. The ambitions
were to strengthen the company's competitiveness and ability to
successfully meet its customers' needs for transport packaging and
related services, and to give Nefab a strong foundation for further
development. Nordic Capital believes the goals for the investment
have now been achieved; Nefab is today a stronger company with a
strengthened geographical presence and higher market share. I would
like to thank the family and management team for their good
cooperation", says Hans Eckerström, board member of Nefab and
Partner, NC Advisory AB, advisor to the Nordic Capital
Funds.

Currently, Nefab operates in 35 countries across
Europe, the Americas and Asia. Products and services are provided
from multiple sites in each country to customers within different
industry segments. Approximately 50% of Nefab's sales are to
customers with a global presence, who value Nefab's ability to
co-ordinate their packaging supply and service around the world.
The global business is supported by a strong local presence in the
world's leading industrial nations, where approximately 10,000
customers receive support from Nefab.

The vision of Nefab to be the global partner for
complete packaging solutions will remain unchanged after the
transaction. The founding family is committed to Nefab's continued
development and will continue to focus on future growth
opportunities. The development of the strategy that was initiated a
few years ago, with an extended focus on expansion of selected
global key accounts, will be even further emphasised going
forward.

"As the founders, we have a long-term view of our
ownership in Nefab. The last seven years of co-ownership with
Nordic Capital have been fruitful for the development of the
company. Given our ambitions for the company's future development
we believe that continued private ownership is favourable for Nefab
right now", says Ing-Marie Nordgren, daughter to the founder of
Nefab.

"We worked closely and well with Nordic Capital for
the past seven years. I am grateful for their contribution in the
form of capital and experience, but most of all their support and
input on how to run improvement projects", says David Mörk, CEO and
President of Nefab. "We are now looking forward to deepening our
relationship and cooperation with the founding family. Their
contribution in terms of core values and entrepreneurship will
continue to be essential for our future
development."

The parties have agreed not to disclose the
financial terms of the transaction.
Navigo Partners has assisted the family as financial advisor in
the transaction.

About Nefab
Nefab, founded in 1949, delivers complete packaging solutions to
international industrial groups, with a focus on the Telecom,
Energy, Aerospace, Vehicles and Healthcare Equipment industries.
Nefab has about 2,600 employees in Europe, North and South America
and Asia. Sales in 2013 amounted to approximately 3 billion SEK.
For more information about Nefab, please visit www.nefab.com

About Nordic Capital
Nordic Capital private equity funds have invested in mid-market
companies primarily in the Nordic region since 1989. Through
committed ownership and by targeting strategic development and
operational improvements, Nordic Capital enables value creation in
its investments. Nordic Capital Funds invest in companies in
northern Europe and in selected investment opportunities
internationally. The most recent fund is Nordic Capital Fund
VIII with EUR 3.5 billion in committed capital, principally
provided by international institutional investors such as pension
funds. Nordic Capital Funds are based in Jersey, Channel Islands,
and are advised by the NC Advisory companies in Sweden, Denmark,
Finland, Norway, Germany and the UK. Additional information
about Nordic Capital is available atwww.nordiccapital.com.